GST for differed (after commissioning & acceptance etc) payment.
Query (Issue) Started By: – MohanLal tiwari Dated:- 29-5-2017 Last Reply Date:- 2-6-2017 Goods and Services Tax – GST
Got 6 Replies
GST
GST is payable on advances received from customers, what is provision for GST where part payment (5% or 10%) is payable after three / six months of receipt & acceptance of goods and balance 10% or 20% payment after successful installation & commissioning or performance of equipment.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 31 (5) of CGST Act, 2017-
Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services,
(a) where the due date of payment is ascertaina
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e according to the above provisions you have to issue the invoice in your case.
Reply By MohanLal tiwari:
The Reply:
Mr Rajgopalan Sir,
Your reply to above query is for services " Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services, whereas in our case, we are supplying goods (machinery parts) and payment terms is say – 10% advance against ABG after order acceptance, 70% against receipt of mtls by consignee, 10% against PBG after 6 months of receipt of goods, balance & final 10% against PBG after successful installation and trial of equipment.
In the sub-section 4 & 5 of the Rule also not applies correctly as it is not continuous supply.
Reply By Rajagopalan Ranganathan:
The Reply:
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